MAHANAGAR GAS LIMITED MAHANAGAR (GAIL, Govt

MAHANAGAR GAS LIMITED MAHANAGAR (GAIL, Govt. of Maharashtra & BGAPH Enterprise) GAS

Ref: MGL/CS/SE/2018/170 Date: August 10, 2018

To,

Head, Listing Compliance Department Head, Listing Compliance Department BSE Limited National Stock Exchange of India Ltd P. J. Towers, Exchange Plaza, Bandra —Kuria Complex, Dalai Street, Bandra (East), Mumbai - 400 001 Mumbai - 400051 Scrip Code/Symbol: 539957; MGL Script Symbol: MGL

Sub: Regulation 30 of SEBI (LODR) Regulations, 2015 — Investors Presentation.

Dear Sir/Madam,

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached herewith presentation to be shared with Analyst/Institutional Investors.

You are requested to take the above information on your records and disseminate the same on your website.

Thanking you,

Yours sincerely,

For Mahanagar Gas Limited

Alok Mishra Company Secretary and Compliance Officer

Encl. : As above

Regd. Office: MGL House, Block G-33, Bandra - Kurla Complex, Bandra (East), Mumbai - 400 051. I T +91 22 6678 5000 F +91 22 2654 0092 I E [email protected] I W www.mahanagargas.com CIN No. L40200MH1995PLC088133 I An ISO 9001, 14001 & OHSAS 18001 Certified Company MAHANAGAR GAS

www.mahanagargas.com MAHANAGAR GAS

2 MAHANAGAR GAS LIMITED One of the largest CGD Companies in India r 'I MAHANAGAR Attractive Sole authorized distributor of CNG and PNG in Mumbai, its Adjoining Areas and Raigad GAS 1 Market with more than 23 year track record in Mumbai < l ...

r 'I

Low-Cost Gas Cost-effective availability of domestic natural gas with sourcing flexibility Availability

, Strong 'I CNG supplied to over 0.64 mn vehicles and PNG to approximately 1.16 mn domestic Customer househol ds'2l Base

lnfrastructu re Over 5,100 kms of pipeline'2l with infrastructure exclusivity<3l and 219 CNG filling stations'2l Exclusivity '- ,) Commitment Safety management systems to seek to ensure safe, reliable and uninterrupted distribution to Health and of gas Safet

r "' Robust Revenue CAG R (FY1 3-1 8): 8.1 % Return on Net Worth (FYl 8): 24.30% Financial Total cash and bank balance of INR 8.0 bn<4,5l Performance Net worth of INR 20.95 bn<5l '" ~ r BG Asia Pacific Holding Pte. Ltd. (BGAPH) - A Royal Dutch Shell Co (24%) Blue-Chip GAIL (India) Ltd. ("GAIL'') (32.5%) Shareholders Government of Maharashtra ("GoM") (10.0%) ... Public (33.5%)

3 MAHANAGAR GAS LIMITED Note: (1) Established in 1995; (2) As of July 31 , 2018; (3) Infrastructure exclusivity at least until 2020 in Mumbai, 2030 in its Adjoining Areas and 2040 in Raigad; (4) Includes Current Investments. (5) As of March 31 2018 Our Journey: Record of Growth and Excellence

MAHANAGAR GAS

Started commercial 200thCNG operations dispensing in Raigad station

Listing on NSE ondBSE New GA Raigad 110% NetWorth allocation tNR billion 20.95 of Pipeline domestic PE-3,800 As of March 31, 2018 gas km& 3rdCGS at Steel-380 Talojo& km

4th CGS at Ambernoth 150thCNG dispensing station 2nd CGS at Mahape ~ PE - 2,500 km& Natura/gos Sreel- 250 supply& km transportation contract with GAIL

97-98 08-09 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18

4 MAHANAGAR GAS LIMITED Areas of Operation

MAHANAGAR GAS

Business Operations Mi ra-Bhayander, Navi Mumbai, Thane City, Kalyan, Taloja, Raigad District Ambernath, Mumbai& (adjacent to Bhiwandi Dombivli, Greater Mumbai existing area of Ulhasnagar, operation) Badlapur, Bhiwandi, Kharghar and Panvel

Population (mn) 20.7 mn population and 3.1 mn households 111

Infrastructure 2020 2030 2040 Exclusivity Khalapur

MGL Pipeline12l 5100 kms Alibaug Raigad Arabian Sea Sudhaga MGLPNG ~ 1.16 mn Floha Connections!2l

Mangaon MGLCNG 2 219 Stations! > Mahad Shrivardhan MGLCNG Poladpur 2 ~ 0.64mn Customers< >

MAHANAGAR GAS LIMITED (1) Figures for Mumbai Metropolitan Region - Total population and technically feasible households out of total population; (2) As of July 31, 2018. MAHANAGAR GAS

6 MAHANAGAR GAS LIMITED ✓

✓

✓ Market Natural Gas and CGD: Attractive Industry

Industry Overview MAHANAGAR GAS

• India was the third-largest energy consumer in the world after China and US in 2017'1l

• India's primary energy consumption has more than doubled between 2000 and 2017, reaching ~754 MToe(l)

• India's per capita energy consumption is one-third of the global average, indicating potentially higher energy demand in the long-term(ll

• Environmentally clean fuels, such as natural gas, are expected to play a dominant role in India's economic growth in the coming years

CGD Sector to Grow at a Faster Pace Post 2018 as Natural Gas becomes a ... With Increased Government Focus Preferred Fuel !21

• Total CGD Demand (mmscmd) Environmental Initiatives

2030E PNG and CNG Corridor 2025E c/GR 12% .J

2020E cfoR9% CGD Expansion in New Cities

2018 ~ R4%

8 Source: (1) BP Statistical Review of World Energy June 2018; (2) April 2017, Bureau of Economic Geology (BEG) / Center for Energy Economics (CEE) China/India Gas Demand, PPAC MAHANAGAR GAS LIMITED Consumption Data for FY17-18 •

5950 6756 7562 9174 • 5954 5954 5954 5954

• ~0% 12% 21% 35% Attractive End Market MGL GAs Market Size and Penetration as on July 31, 2018 MAHANAGAR GAS CNG Vehicle m and House holds Restaurants (In Mn.) (Nos.)

37% 32% 12,000 I 29% penetration • 3.1 • 2.01

0.64

3,432 CNG Domestic PNG Market Size (Mn) Penetration (Mn.) • % Penetration • • Market Size (Nos.) Penetrat ion (Nos.}

Industrial & Bulk Commercial (Nos. & Volume in '000 SCMD) 680 51% penetration (vol.) Low penetration in areas of operations with 534 high likelihood of growth 344 239

Regulatory environment favorable for Market Size Market Size Penetration Penetration managing profitability (Nos.) (Vol.) (Nos.) (Vol.)

Remark : The Market size consists of alternate fuel (excluding solid fuels)

10 MAHANAGAR GAS LIMITED (1) Market Size excludes diesel cars and 2 w heelers • • • • • • • • •

•

• • •

•

• • 73.87% •

•

12.56% 6.08% 7.48% • CNG Sales Domestic PNG Commercial PNG Industrial PNG Sales Sales Sales

2.60 2.53 2.39 2.28 2.50 2.07 2.36 2.27 104% 107 % 2.14 0.45 0.43 2.06 106 % 0.36 0.38 0.39 0.40 InMMSCMD 107% 101%

FY14 FY15 FY16 FY17 FY18 FY19 (Till July'18) Priority Segment Allocation Priority Segment Sales/ Demand Volume in MMSCMD Priority Allocation as a % of Priority Sales • ✓ ✓ ✓

• ✓ • •

•

• • •

• •

•

• ✓

✓

Mother CNG stations/ LCV PRS FLAME IN KITCHEN CGS (Supply Point) (Delivery Point) Shareholding Pattern as of 30th June, 2018

FIIs / FPIs 12.7% •

• Government 10.0%

Indian Promoter Mutual • and Funds Promoter 5.3% • Group 56.5% Others 15.5% •

• Mr. Sanjib Datta Managing Director (Nominee of GAIL) • Over 32 years of experience • Over 15 years of experience at MGL • Heading business development function in GAIL Prior to joining • Prior experience at Bilt Chemicals, Cabot India, Cement Corporation of India and Indian • Experience includes Merger & Acquisition Aluminium Company initiative & Steering of Globalization efforts

Mr. Goutam Ghosh, Technical Director (Nominee of BGAPH) • Over 36 years of experience • Over 27 years of experience • Prior Experience at Royal Dutch Shell plc group • Prior experience at Engineers India Limited of Companies, ONGC, TATA, ARCO. and GSPC Gas Company Limited

• Over 21 years of experience at MGL • Over 27 years of experience in Contracts & • Prior experience at Wander Ltd., Herdillia Procurement Polymers, Goodlass Nerolac and Ashok Organic • Prior experience at L&T, GAIL(India) Limited Industries

• Over 15 years of experience at MGL • Prior experience at GAIL, Quantum Information Systems Limited and Enron India Private Limited MAHANAGAR GAS

Financial and Operational Performance

19 MAHANAGAR GAS LIMITED CNG Customers (end users) Growth PNG Customers Growth (In ‘000s) (In ‘000s) 609 631 545 1,037 1,057 952 470 865 421 804 709 359 643 286

FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 Q1 19 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 Q1 19

CNG Volume (mmscmd) PNG Volume (mmscmd) 5 yr. CAGR 5.5% 5 yr. CAGR 5.1% 2.12 0.75 1.98 0.72 1.90 0.67 1.77 1.80 0.62 0.63 1.66 0.60 1.52 0.56

FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 Q1 19 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 Q1 19

Total volume CAGR of 5.4% Revenue and Profitability

Revenue (INR Bn) 5 yr. CAGR CNG 10.2% 5 yr. CAGR PNG 4.2% 6.8 5 yr. CAGR Total 8.1% 7.3 6.0 5.8 7.1 5.5

15.4 13.5 14.7 14.3 11.6 9.5 2.0 4.2

FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 Q1 19 Others PNG CNG

Gross Profit (INR Bn)

12.0 10.2 8.5 7.0 7.4 8.0 3.3

FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 Q1 19

Note: (1) Revenue from Operations (Net) excluding Other Income (2) Gross Profit = Sale of Natural Gas and Traded Items - Cost of Natural Gas and Traded Items + Other Operating Income Adverse forex rate, o Cautious pricing in view of 110% Higher RLNG spot rates, allocation of domestic gas EBITDA (INR Bn) relatively less increase in o In 2nd half of FY 16, lower Brent alternate fuel prices – so → lower Industrial & INR 0.24 billion less Commercial prices margin from Industrial & Commercial

7.8 6.4 4.8 4.9 4.9 5.1 2.1

FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 Q1 19

PAT (INR Bn)

4.8 3.9 3.0 3.0 3.0 3.1 1.3

FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 Q1 19 Note: (1) EBITDA = Revenue from Operations - Total expenses excluding Finance Costs and Depreciation and Amortization Expense. (2) Profit After Tax = Total Revenue – Total Expenses – Tax Expense. Capex (INR bn) (1) Operating Cash Flow (INR bn) (2) 6.5 2.7 2.5

2.3 5.3 2.2 2.0 4.4 4.3 4.2 1.8 4.0

2.6

0.8

FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 Q1 19 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 Q1 19

Note: (1) Includes purchase of fixed assets, including intangible assets, capital work in progress and capital advances. (2) Net cash flow from operating activities as per the cash flow statement. Particulars FY 13 FY 14 FY 15 FY 16 FY17 FY 18 Q1 19 20.0 70.0%

61.3% 61.5% 60.8% 18.0 58.8% 60.0% 16.0 55.7% 6.5 6.5 50.0% 14.0 7.5 7.5 7.5 7.5 46.8% 12.0 40.0% 10.0 30.0% 8.0

12.5 12.5 6.0 20.0% 10.0 10.0 10.0 10.0 4.0 10.0% 2.0

- 0.0% FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 Special DPS (INR) Normal DPS (INR) Payout Ratio %

Note: Payout Ratio calculated including Dividend Distribution Tax. Interim dividend of Rs.8 per share was paid for FY 18 and Final dividend is proposed & pending for shareholders’ approval at AGM. MAHANAGAR GAS

26 MAHANAGAR GAS LIMITED Mr. Akhil Mehrotra, Non-Executive Chairman (Nominee of BGAPH)

• On the Board since March 11, 2016 • Over 27 years of experience in the industry. Presently, Director – Downstream business, BG India • Previously associated with the Reliance Group of Companies

Mr. Virendra Nath Datt, Non-Executive Director (Nominee of GAIL)

• Rich experience of over 33 years in the Natural Gas Industry in India. • He started his career with ONGC in 1985 and then moved to GAIL in 1995. • Holds a Bachelor’s degree in Science from Kurushetra University, Haryana and a Masters in Business Administration from Maharishi Dayanand University, Rohtak, Haryana.

Mr. Satish Gavai, Non-executive Director (Nominee of Government of Maharashtra) • Over 33 years of rich experience, and belongs to the 1984 batch of IAS (Maharashtra Cadre) • Has been CEO of MIDC, VP and CEO of MHADA, Addl Comm (Projects) of BMC and Principal Secretary of Water Resource Dept. • BSc in Physics from Mumbai University and has completed post- graduation from Cornell University, New York

Mr. Sanjib Datta, Managing Director (Nominee of GAIL) ▪ Over 32 years of experience ▪ Heading business development function in GAIL Prior to joining ▪ Holds a Bachelor's degree in Electrical Engineering from Jadavpur University, Kolkata.

Mr. Goutam Ghosh, Technical Director (Nominee of BGAPH) • On the Board since November 2017. • Before taking over his current role in MGL, Mr. Ghosh was Head, HSSE & Assurance, BGEPIL (a part of the Royal Dutch Shell plc group of Companies) and a member of Asset Leadership Team of BGEPIL since 2011.. • Mr. Goutam Ghosh is a post graduate from Indian Institute of Technology (Indian School of Mines), Dhanbad and earned a diploma in Management from Chartered Management Institute, UK. Mr. Premesh Kumar Jain, Non-Executive Director

• On the Board effective from April 09, 2018. • Over 35 years of experience in Oil & Gas sector in areas of FX Risk Mgmt, Budgeting & Corporate Accounts • Former Director (Finance) of GAIL for more than 6 years • Chartered Accountant and MBA (University of Hull, UK)

Mr. Arun Balakrishnan, Independent Director

• On the Board since July 2011. • Over 37 years of experience and previously served as Chairman and Managing Director of HPCL • PGDM from IIM, Bangalore and Bachelor’s degree in Chemical Engineering from the University of Calicut

Ms Radhika Haribhakti, Independent Director • Over 31 years of experience in Commercial and Investment banking with Bank of America, JM Morgan Stanley and DSP Merrill Lynch. • Serves as an Independent Director on the Boards of Adani Ports & SEZ, EIH Associated Hotels, Ltd., ICRA Ltd., Navin Flourine International Ltd., Rain Industries Ltd and Vistaar Financial Services Pvt. Ltd. • An MBA in Finance from IIM, Ahmedabad and Commerce graduate from Gujarat University.

Mr. Santosh Kumar, Independent Director • On the board since July 2011 and served 3 years as Director (Projects) at GAIL • Previously held positions such as Chairman, Green Gas Ltd., Director on the Boards of Maharashtra Natural Gas and Central UP Gas Ltd., and Advisor with GSPL • Bachelor’s degree in Electronic Engineering from the University of Allahabad

Mr. Raj Kishore Tewari, Independent Director • On the board since March 2015 • Previously served as the Chairman of the Central Board of Direct Taxes in the Ministry of Finance, Govt. of India • M.Sc. (Fiscal Studies) from the University of Bath, UK, M.Sc. (Physics) from the University of Lucknow and Bachelor’s degree in Law from the University of Mumbai Statement of Financial Results for the quarter ended June 30, 2018 INRMn

For three months ended For the year ~AHANAGA R Sr. ended GAS Particulars 30.06.2018 31.03.2018 30.06.2017 No. 31.03.2018 (Unaudited) (Audited) (Unaudited) (Audited) I Revenue from Operations (refer note 6) 6,762.70 6,437.80 5,828.46 24,529.17 II Other Income 153.40 173.49 121.88 576.81 III Total Income (I + II) 6,916.10 6,611.29 5,950.34 25,105.98 IV Expenses : Cost of Natural Gas and Traded Items I 2,930.20 I 2,913.96 I 2,311.85 I 10,291.62 Changes in Inventories I (1.00) I (0.09) I 0.07 I (0.47) Excise Duty I 569.30 I 568.04 I 519.92 I 2,199.10 Employee Benefits Expense I 168.80 I 161.14 I 174.64 I 670.17 Finance Costs I 0.60 I 0.61 I 0.08 I 0.90 Depreciation and Amortisation Expenses I 295.10 I 339.35 I 246.29 I 1,111.95 Other Expenses 986.00 1033.16 793.08 3,567.67 Total Expenses 4949.00 5016.17 4045.93 17,840.94

V Profit Before Tax for the period(III- IV) 1,967.10 1,595.12 1,904.41 7,265.04

VI Income Tax Expense : I I I I (i) Current Tax I 611.80 I 362.70 I 600.70 I 2,117.58 (ii) Deferred Tax 72.00 184.81 60.44 368.83 Total Income Tax Expense (i+ii) 683.80 547.50 661.14 2,486.41

VII Profit After Tax for the period(V - VI) I 1,283.30 I 1,047.61 I 1,243.27 I 4,778.63 I I I I VIII Other Comprehensive Income I I I I Items that will not be reclassified to profit or loss : I I I I Gains/(Losses) on Remeasurements of the Defined Benefit Plans I 4.00 I 26.16 I (2.92) I 15.90 Income tax relating to items that will not be reclassified to profit or loss (1.40) (9.18) 1.01 (5.63) Total Other Comprehensive Income 2.60 16.98 (1.91) 10.27

IX Total Comprehensive Income for the period (VII + VIII) 1,285.90 1,064.59 1,241.36 4,788.90 I 29 MAHANAGAR GAS LIMITED Statement of Assets and Liabilities as at March 31, 2018 INRMn MAHANAGAR As at As at AS Particulars 31st March, 2018 31st March, 2017 ASSETS I I I. Non-current Assets I I (a) Property, Plant and Equipment I 15,280.59 I 13,003.09 (b) Capital Work-in-Progress I 3,566.23 I 4,115.28 (c) Intangible Assets I 38.91 I 44.43 (d) Financial Assets I I (i) Trade receivables I 2.05 I 3.66 (ii) Security Deposits I 177.50 I 217.20 (iii) Other Financial Assets I 251.65 I 4.29 (e) Income Tax Assets (net) I 239.93 I 79.93 (f) Other Non-current Assets 790.51 828.69 Total Non-current Assets (I) 20,347.37 18,296.57

II. Current assets I I Inventories I 239.99 I 237.63 (b) Financial Assets I I (i) Investments I 6,876.84 I 4,666.66 (ii) Trade Receivables I 913.46 I 945.44 (iii) Cash and Cash Equivalents I 150.15 I 73.89 (iv) Bank balances other than (iii) above I 768.63 I 1,287.19 (v) Security Deposits I 155.22 I 121.91 (vi) Other Financial Assets I 479.22 I 406.87 (c) Other current assets 171.48 206.34 Total Current assets (II) 9,754.99 7,945.93

Total Assets (I+II) 30,102.36 26,242.50

MAHANAGAR GAS LIMITED ~ As at As at Particulars 31st March, 2018 31st March, 2017 EQUITY AND LIABILITIES I. Equity (a) Equity Share Capital 987.78 987.78 (b) Other Equity 19,965.69 17,412.60 Total Equity (I) 20,953.47 18,400.38

II. Liabilities A. Non-current Liabilities (a) Financial Liabilities Borrowings 11.95 27.00 (ii) Other Financial Liabilities 8.59 1.96 (b) Provisions 147.52 140.06 (c) Deferred Tax Liabilities (net) 1,748.29 1,376.27 Total Non-current Liabilities (A) 1,916.35 1,545.29

B. Current Liabilities (a) Current Financial Liabilities (i) Trade Payables 1,100.27 1,200.90 (ii) Security Deposits 4,431.54 3,878.16 (iii) Other Financial Liabilities 1,256.86 750.54 (b) Provisions 51.43 66.52 (c) Income Tax Liabilities (net) 8.08 11.63 (d) Other Current Liabilities 384.36 389.08 Total Current Liabilities (B) 7,232.54 6,296.83

Total Liabilities (II = A+B) 9,148.89 7,842.12

Total - Equity and Liabilities (I+II) 30,102.36 26,242.50 For the year ended For the year ended PARTICULARS 31st March 2018 31st March 2017 Revenue from Operations 24,529.17 22,390.71 Other Income 576.81 526.57 Total Income 25,105.98 22,917.28

Expenses : Cost of Natural Gas and Traded Items 10,291.62 10,183.62 Changes in Inventories (0.47) 0.40 Excise Duty on Sale of Compressed Natural Gas 2,199.10 2,051.00 Employee Benefits Expense 670.17 600.19 Finance Costs 0.90 10.21 Depreciation and Amortisation Expenses 1,111.95 951.32 Other Expenses 3,567.67 3,113.95 Total Expenses 17,840.94 16,910.69

Profit Before Tax for the year 7,265.04 6,006.59 Income Tax Expense : (i) Current Tax 2,117.58 1,894.72 (ii) Deferred Tax 368.83 177.61 Total Income Tax Expense (i+ii) 2,486.41 2,072.33

Profit After Tax for the year 4,778.63 3,934.26 Other Comprehensive Income Items that will not be reclassified to profit or loss : Gains/(Losses) on Remeasurements of the Defined Benefit Plans 15.90 (10.15) Income tax relating to items that will not be reclassified to profit or loss (5.63) 3.51 Total Other Comprehensive Income 10.27 (6.64) Total Comprehensive Income for the year 4,788.90 3,927.62 Statement of Cash Flows for the year ended March 31, 2018

For the year ended For the year ended PARTICULARS 31st March 2018 31st March 2017 ₹ Million ₹ Million I. CASH FLOW FROM OPERATING ACTIVITIES Profit before tax as per Statement of Profit and Loss 7,265.13 6,006.60 Adjustments for: Depreciation and Amortisation Expense 1,111.85 951.32 Write-off and Loss on Disposal of Property, Plant and Equipment 24.92 10.10 Net unrealised foreign exchange (gain)/ loss 5.99 (9.75) Gain on sale of Investments (44.19) (69.50) Unrealised Gain on Investments (62.92) (59.15) Allowance for Doubtful Trade Receivables (Net) 1.81 9.16 Allowance for Doubtful Security Deposits (Net) 9.27 (13.21) Bad Trade Receivables written off 1.01 10.01 Sundry Deposits written Off 3.19 14.95 Finance Costs 0.90 10.21 Dividend Income on Investments (188.98) (135.18) Interest Income (144.93) (142.37) Operating Profit Before Working Capital Changes 7,983.05 6,583.19 Movements in working capital : (Increase)/Decrease in Inventories (2.35) (57.37) (Increase)/Decrease in Trade Receivables 30.78 (34.18) (Increase)/Decrease in Security Deposits (6.07) (72.18) (Increase)/Decrease in Other Financial Assets (72.30) (84.23) (Increase)/Decrease in Other Non Current Assets 35.46 (370.03) (Increase)/Decrease in Other Current Assets 34.87 (37.79) Increase/(Decrease) in Other Financial Liabilities 344.61 477.25 Increase/(Decrease) in Provisions 8.27 33.60 Increase/(Decrease) in Trade Payables (106.62) 29.25 Increase/(Decrease) in Security Deposits (Liability) 559.93 684.78 Increase/(Decrease) in Other Current Liabilities (4.72) 32.25 821.86 601.35

Cash Generated from Operations 8,804.91 7,184.54 Income Taxes Paid (2,283.58) (18,61.87) Net Cash from Operating Activities 65,21.33 5,322.67 MAHANAGAR GAS LIMITED Statement of Cash Flows for the year ended March 31, 2018 (Contd ....)

i------~----~------imn1.... ANAGAR For the year ended For the year ended GAS PARTICULARS 31st March 2018 31st March 2017 I ₹ Million I ₹ Million II. CASH FLOW FROM INVESTING ACTIVITIES I I

Payments for Property, Plant and Equipment (2,690.29) (2,545.22) Proceeds from sale of Property, Plant and Equipment 1.66 0.55 Payments for purchase of Investments (32,420.49) (25,616.03) Proceeds from sale of Investments 30,334.01 24,942.53 Movements in Bank Deposits not considered as Cash and Cash Equivalents 248.44 248.37 Interest Received 106.85 132.04 Dividend Received on Investments 188.98 135.18 Gain / (Loss) on sale of Investments 44.19 69.50 Net Cash (used in) Investing Activities (4,186.65) (2,633.08)

III. CASH FLOW FROM FINANCING ACTIVITIES

Repayment of Borrowings (15.05) (18.32) Dividend Paid (Includes Dividend Distribution Tax) (2,235.90) (2,816.16) Interest Paid (7.45) (3.12) Net Cash (used in) Financing Activities (2,258.40) (2,837.60)

Net Increase/(Decrease) in Cash and Cash Equivalents (I+II+III) 76.26 (148.02) Cash and Cash Equivalents at the beginning of the year (refer note 10) 73.89 221.91 Cash and Cash Equivalents at the end of the year (refer note 10) 150.15 73.89 I I

34 MAHANAGAR GAS LIMITED Summary of Assets and Liabilities INRMn IIAUA ..IAl"AR Asat Asat Asat Particulars 31.03.2016 31.03. 2015 31.03.2014 EQUITY AND LIABILITIES Shareholders' Funds Share Capital 893.42 893.42 893.42 Reserves and Surplus 14,386.33 13,181.23 12,076.16 Non-current Liabilities Long-term Borrowings 43.76 155.88 79.83 Deferred tax Liabilities (Net) 1,181.20 1,027.09 887.09 Other long-term Liabilities 5.25 10.63 7.78 Long term Provisions 52.75 68.32 40.42 Current Liabilities Total outstanding dues of Micro, Small and Medium Enterprises 17.85 26.61 13.02 Total outstanding dues of creditors other than Micro, Small and Medium Enterprises 1. 101.47 1,092.94 1,050.69 Other current Liabilities 3,897.63 3,227.00 2,751.28 Short-term Provisions 1,983.30 1,972.73 1,943.32 TOTAL 23,562.96 21,655.85 19,743.01 ASSETS Non-Current Assets Tangible Assets 11 ,549.24 10,594.36 9,871.1 8 Intangible Assets 46.87 45.71 43.69 Capital work-in-progress 4,288.64 3,796.20 3,454.41 Long term Loans and Adva nces 429.90 296.34 236.07 Other Non-Current Assets 10.87 17.82 16.74 Current Assets Current Investments 3,881.98 3,714.66 3,420.66 Inventories 180.27 173.55 158.66 Trade Receivables 892.55 962.31 1,092.63 Cash and Cash Equivalents 1,720.87 1,449.17 888.06 Short-term Loans and Advances 276.04 306.26 284.21 Other Current Assets 285.73 299.47 276.70 TOTAL 23,562.96 21,655.85 19, 743.01 35 MAHANAGAR GAS LIMITED Note: These results are as per earlier accounting standards Summary Statement of Profit and Loss INRMn MAHANAGAR GAS For the year ended Particulars 31.03.2016 31.03.2015 31.03.2014

Revenue from Operations

Sale of Natural Gas (Net) 20,653.28 20,778.09 18,686.40 Sale of pipes, fittings and other materials 14.88 4.68 12.43 Other operating income 121.11 166.51 152.70 Other Income 427.01 407.09 344.94 Total Revenue 21,216.28 21,356.37 19,196.47 Expenses

Cost of Natural Gas and Traded Items 12,296.26 12,958.08 11,444.37 Changes in Inventories 0.72 (0.85) (1.09) Employee benefits expense 537.12 511 .11 416.89 Finance Costs 29.45 12.05 2.07

Depreciation and amortization expense 840.57 799.09 807.16

Other expenses 2,825.67 2,583.95 2,109.24 Total expenses 16,529.79 16,863.43 14,778.64 Profit before tax 4,686.49 4,492.94 4,417.83 Total Tax 1,599.62 1,482.93 1,445.34 Profit after tax for the year 3,086.87 3,010.01 2,972.49 36 MAHANAGAR GAS LIMITED Note: These results are as per earlier accounting standards Summary Statement of Cash Flows INRMn

For the year ended Particulars 31.03.2016 31.03.2015 31.03.2014 CASH FLOW FROM OPERATING ACTIVITIES Profit before taxation (as restated) 4,686.49 4,492.94 4,417.83 Adjustments for Depreciation and amortisation expense 840.57 799.09 807.16 Loss on Sale/ Disposal of Assets (Net) 4.23 0.05 0.93 Loss on Sale of Current Investments - Non Trade (Net) 0.46 Profit on sale of current investments - Non trade (Net) (40.34) (15.88) Fixed Assets Written Off 0.15 0.13 4.32 Provision for/ (Reversal of) Doubtful Trade Receivables 3.36 (2.05) 3.62 Provision for/ (Reversal of) Doubtful Security Deposits (5.46) 7.73 (8.09) Bad Trade Receivables written off 1.60 3.64 3.74 Exchange Fluctuation (Net) 1.95 (3.3 7) 9.83 Provision for Leave Encashment 15.83 19.22 2.26 Finance Costs 29.45 12.05 2.07 Dividend Income on Current Investments - Non trade (150.20) (241 .1 5) (223.84) Interest on Bank Fixed Deposits (103.66) (75.64) (59.58) Operating profit before working capital changes (as restated) 5,283.97 4,996.76 4,960.71 Movements in Working Capital (lncrease)/Decrease in Inventories (6.72) (14.89) (20.93) (lncrease)/Decrease in Trade Receivables 64.80 128.73 (198.12) (lncrease)/Decrease in Long Term Loans and Advances (74.99) (40.99) (1.15) (lncrease)/Decrease in Other Non Current Assets 6.95 (1.09) 0.47 (lncrease)/Decrease in Short Term Loans and Advances 35.68 (29.78) (58.30) (lncrease)/Decrease in Other Current Assets (1.27) (13.54) (48.65) lncrease/(Decrease) in Other Long Term Liabilities (5.38) 2.85 6.93 lncrease/(Decrease) in Long Term Provisions (15.57) 27.90 40.42 lncrease/(Decrease) in Trade Payables (2.19) 59.21 189.95 lncrease/(Decrease) in Other Current Liabilities 467.10 540.37 387.85 lncrease/(Decrease) in Short Term Provisions 2.63 1.32 2.90 471.04 660.09 301.37 Cash Generated from Operations 5,755.01 5,656.85 5,262.08 Income taxes paid (net of refunds) (1,500.71) (1,389.71) (1,285.60) Net Cash from Operating Activities 4,254.30 4,267.14 3,976.48

MAHANAGAR GAS LIMITED Note: These results are as per earlier accounting standards Summary Statement of Cash Flows (Contd ....)

INR Mn MAHANAGAR GAS For the year ended Particulars 31.03.2016 31.03.2015 31.03.2014

CASH FLOW FROM INVESTING ACTIVITIES Purchase of fixed assets, including intangible assets, capital work in progress and capital (2,211.25) (1,975.94) (1 ,768.44) advances Proceeds from sale of fixed assets 1.09 1.29 0.44 Purchase of current investments (23,494.66) (24,398.62) (20,837.50) Sale of Current Investments 23,367.69 24,120.49 20,437.58 Bank balances not considered as Cash and Cash Equivalents (217.99) (662.01) (1 01.59) Interest Received 118.67 66.41 47.05 Dividend Received on Current Investments - Non trade 150.20 241.15 223.84 Net Cash (used In) Investing Activities (2,286.25) (2,607.23) (1,998.62) CASH FLOW FROM FINANCING ACTIVITIES Issue of 9% Unsecured Compulsorily Convertible Debentures 94.36 Repayment of Borrowings (17.76) (18.31) (18.50) Dividend paid (1,563.48) (1,563.48) (1 ,563.48) Corporate Dividend Tax (318.29) (265.71) (265.71) Interest Pa id (14.81) (7.67) (3.93) Net Cash (used in) Financing Activities (1,914.34) (1,760.81) (1,851.62) Net (Decrease)/lncrease in Cash and Cash Equivalents 53.71 (100.90) 126.24 Cash and Cash Equivalents at the beginning of the year 157.39 258.29 132.05 Cash and Cash Equivalents at the end of the year 211.10 157.39 258.29

Cash and cash equivalents at the end of the year comprises

Cash on Hand 0.02 0.01 0.01 Cheques on Hand 0.10 Balances with Banks In Current Accounts 211.08 157.28 258.28

211.10 157.39 2S8.29

38 MAHANAGAR GAS LIMITED Note: These results are as per earlier accounting standards Safe Harbor MAHANAGAR GAS

• This presentation may contain statements which reflect the management's current views and estimates and could be construed as forward looking statements.

• The future involves certain risks and uncertainties that could cause actual results to differ materially from the current views being expressed.

• Potential risks and uncertainties include such factors as general economic conditions, competitive product and pricing pressures and regulatory developments.

39 MAHANAGAR GAS LIMITED MGL House, G-33, Sandra Kurla Complex, Bandra (E) Mumbai - 400 051 T +91 22 6678 5000 F + 91 22 6540093/1046 https://www.mahanagargas.com

CIN: L40200MH 1995PLC088133 MAHANAGAR GAS 40 MGL House, G-33 Block, Sandra Ku rla Complex, Sandra (E) , M umbai - 400051 IT+9 1 22 6678 5000 IF+91 22 654 0093/ 1046 www.mahanagargas.com